In Spain, the Personal Income Tax Law provides for cases where income is exempt from personal income tax. Article 7, section p) concerns displaced or expatriate workers who benefit from the exemption for an amount of up to 60100 euros per year. In other words, the worker’s salary will not be taxed on the first 60100 euros.
The objective of this exemption is twofold:
This exemption is an advantage for both the worker and the company since it allows the worker to receive a higher net remuneration without entailing any cost for the company that employs him.
Not all workers who travel for professional reasons will be able to benefit from the exemption. In order to benefit from the 7p exemption, the following conditions must be met:
N.B. It does not apply to self-employed workers